The director of an accounting firm that has successfully incorporated financial advisory services into its operations has stressed the culture of a particular practice and the associated client proposition should be the two guiding factors for the direction taken under the new accountants’ licensing regime.
Speaking at the 2015 CPA Australia SMSF Conference in Sydney recently, MGD Wealth director Andrew Albury said: “Get your client value proposition and your firm culture ideas in your head and what that means at a licensing level as to whether you need to have an independent licensing model.
“It’s pretty imperative to get all of this right.”
Albury said in the case of MGD Wealth, holding its own Australian financial services licence had worked well due to the importance the firm placed on independence.
“I’ve always been comfortable in my evolution to all of this because I’ve never felt anything other than I work in the best interests of my clients,” he said.
“I’ve never felt I was pedalling or pushing products or answering to a higher god that was telling me to do things.
“I’ve always been comfortable in not thinking there was another agenda behind me that I’m not really disclosing and I haven’t had to wake up at night thinking about that.
“So think that one through because I think that’s pretty important. It certainly has been in our business.”
Licensing for Accountants chief executive Kath Bowler suggested if accountants were considering operating as an authorised representative of an existing licensee, then speaking to another accountant in another location who was already operating in that manner could be a prudent move.
“It’s so you can get comfortable that you can operate your business your way [under a particular licensee],” Bowler said.
She emphasised flexibility was a key component to choosing an appropriate licensee and accountants should avoid arrangements that locked them in, not allowing them to change licensing options if the initial choice ended up being a poor cultural fit.
Licensing arrangements that did not involve the recommendation of product would likely be less constricting, she said.
“Make sure your business drives you and your licensing decision,” she said.
